Category: Greece

Kyriakides Georgopoulos has advised Aviation Capital Group and High Ridge Aviation on the sale and transfer of two Airbus A320-251N aircraft from ACG to HRA and their lease novation with Greek operator Sky Express. 

Aviation Capital Group is a subsidiary of Tokyo Century Corporation, a leasing and specialty finance conglomerate.

High Ridge Aviation is an asset manager.

Sky Express is a Greek airline headquartered in the Heraklion International Airport.

In 2024, Kyriakides Georgopoulos advised ACG and Castlelake on an aircraft sale (as reported by CEE Legal Matters on October 18, 2024).

The KG team included Partner Claire Pavlou, Senior Associate Amalia Pantazi, and Junior Associate Electra Livani.

KG did not respond to our inquiry on the matter.

Koutalidis has promoted Senior Associates Dora Karagiorgou and Manolis Kasotakis to Partner as part of its latest promotion round.

Karagiorgou has been with the firm since 2007, when she joined as an Associate. She was promoted to Senior Associate in 2016. Her primary area of focus is employment law.

Kasotakis’ primary areas of focus are litigation and commercial arbitration. He has been with the firm since 2010.

Drakopoulos has advised Guy Carpenter on the acquisition of the remaining 51.5% stake in Carpenter Turner from Noorstar Investments. Apostolos Georgiades & Associates reportedly advised the sellers.

Guy Carpenter is a risk and reinsurance specialist and part of Marsh McLennan, a professional services firm headquartered in New York with businesses in insurance brokerage, risk management, reinsurance services, talent management, investment advisory, and management consulting.

Carpenter Turner is a regional reinsurance broker and consultancy firm based in Athens. 

According to Drakopoulos, by fully integrating Carpenter Turner into its operations, Guy Carpenter seeks to bolster its presence in Greece, Cyprus, the Balkans, and Turkey, aligning with its growth strategy across the region.

The Drakopoulos team included Managing Partner Panagiotis Drakopoulos, Partners Mika Lalaouni and Georgia Konstantinidou, and Senior Associates Sofia Angelakou and Eirini Galanou.

Reed Smith has advised Phoebe Energy on securing non-recourse financing of EUR 341.4 million from Eurobank and Piraeus Bank for a 550-megawatt photovoltaic project in Ptolemaida, Western Macedonia, Greece.

Phoebe Energy is a wholly-owned subsidiary of PPC Renewables.

According to Reed Smith, supported by Eurobank and Piraeus Bank and partially funded through the Recovery and Resilience Facility, the project repurposes decommissioned lignite mines and will generate approximately 1 terawatt-hour of electricity – enough to power 200,000 households. 

In 2024, Reed Smith advised on PPC Renewables’ EUR 294.4 million PV project financing (as reported by CEE Legal Matters on March 14, 2014).

The Reed Smith team included Partner Dimitris Assimakis, Counsel Minas Kitsilis, Senior Associate George Fountas, and Associate Zissis Papazissis. 

Reed Smith did not respond to our inquiry on the matter.

Lambadarios, working with Reed Smith, has advised Sony Music on its acquisition of Cobalt Music from its founder. CJA Entertainment Legal reportedly advised the sellers.

Cobalt Music is a music publishing company in Greece.

The Lambadarios team included Managing Partner Constantinos Lambadarios, Partners Chara Daouti and Melina Katsimi, Senior Associates Margarita Kontogeorgou and Natalia Kalatzi, and Associate Virginia Kyrlakitsi.

Koutalidis has advised Sfakianakis Group on the restructuring of its debt with a total value of approximately EUR 300 million.

Sfakianakis Group is a Greek automobile distributor.

The Koutalidis team included Managing Partner Nikos Koritsas, Partners Effie Papoutsi and George Naskaris, and Associates Maria Krika, Aristides Makripodis, Eriketi Diakoumakou, and Panagiota Thivaiou.

Lambadarios has advised BriQ REIC on its merger with Intercontinental International REIC. Machas & Partners advised Intercontinental International REIC.

BriQ REIC is an investment company focusing on the Greek real estate market.

Intercontinental International REIC is a real estate investment company.

The Lambadarios team included Managing Partner Constantinos Lambadarios, Partners Melina Katsimi and Prokopis Dimitriadis, Special Counsel Manos Mastromanolis, Counsel Sophia Alonistioti, Senior Associates Margarita Kontogeorgou, Anna Gkogka, and Natalia Kalatzi, and Associates Eirini Lenti and Virginia Kyrlakitsi.

The Machas & Partners team included Founding Partner Petros Machas and Partner Ioannis Charalampopoulos.

Koutalidis, working with Clifford Chance, has advised Attica Bank on a EUR 220 million synthetic securitization of its SME and Large Corporate portfolio.

According to Koutalidis, “this transaction, which marks the first synthetic securitization via a direct issuance of credit linked notes by a Greek bank, enabled Attica Bank to achieve significant risk transfer and reduce its risk-weighted assets by approximately EUR 150 million, through the sale of the mezzanine tranche of the CLN.”

The Koutalidis team included Partners Effie Papoutsi and George Naskaris.

Koutalidis did not respond to our inquiry on the matter.

Law 5162/2024 (“New Law”), which aims to enhance business innovation and competitiveness through tax incentives for investments in start-ups, introduces significant changes in Law 4172/2013 (Income Tax Code) and Law 5038/2023 (Immigration Code) providing substantial benefits and opportunities to Angel Investors.

According to Greek legislation, Angel Investors are considered to be natural persons, tax residents in Greece or abroad, holders of a Greek Tax Identification Number, who provide capital contribution in cash to start-ups. Start-ups covered by the New Law are those registered in the National Registry of Startups “Elevate Greece”, which is accessible through the platform www.elevategreece.gov.gr. 

Taxable Income Deductions for Angel Investors

Article 36 of the New Law brings considerable alterations to the taxable income deductions provided by the previous regime of Article 70A of the Income Tax Code, under which an amount of up to 50% of the amount contributed to start-ups was deductible from the taxable income of Angel Investors. This deduction was also limited to capital contributions of up to €300,000 per year and €100,000 per company.

Under the new regime of Article 70A of the Income Tax Code as amended by the New Law:

• taxable income deduction is also extended to capital contributions made by Angel Investors to closed-end venture capital mutual funds (“A.K.E.S.”) established in Greece and managed by a domestic company for the purpose of making venture capital investments, and
• the maximum contribution eligible for a 50% deduction is raised to 900,000€ per year and 300,000€ per company , encouraging larger investments.

Therefore, by increasing the maximum contribution limit, as well as by extending the possibility of using this incentive for capital contributions in A.K.E.S., the tax incentives for Angel Investors are being remarkably expanded, in order to favour the creation of investment schemes based entirely in Greece.

Introduction of new Golden Visa for Angel Investors

The New Law introduces also a new type of residence permit (type B.6.), which is obtained by investing at least 250,000€ in the capital of a start-up company either (a) for the acquisition of shares through a share capital increase or (b) for the acquisition of bonds following the issuance of a bond loan by the start-up company.

This new Golden Visa can be acquired provided that the following conditions/obligations are met:

1. The acquired shares or participations must not exceed 33% of the share capital or voting rights of the start-up company.
2. The start-up company must create, within the first year after the investment is made, at least 2 new jobs.
3. The start-up company must maintain, for at least five years after the investment is made, the same total number of jobs plus the jobs referred to above.

Angel Investors are, also, able to acquire this new Golden Visa by investing in Greek start-up companies through legal entities in which they hold a significant percentage of shares. In particular, if the concerned entity is a domestic legal entity, the Angel Investor must own 100% of its shares, while in case of a foreign legal entity, the Golden Visa may be granted to up to three of its Shareholders (Angel Investors) holding at least 33% each.

Tax Incentives for scientific and technological research capital expenditure for start-ups

It is worth mentioning that under the New Law, not only Angel Investors but also start-up companies themselves are able to benefit from tax incentives. In particular, Article 35 of the New Law adds a new provision in Article 22A of the Income Tax Code, according to which the scientific and technological research expenditures of start-ups are deductible from their gross income, at the time of their realization, increased by 150%.

Conclusion

The introduction of the New Lawmarks a significant step in the right direction for fostering an even more investment-friendly environment in Greece. By offering substantial tax incentives to Angel Investors and start-up companies, the Greek Government is demonstrating its commitment to stimulating innovation, entrepreneurship, and economic growth. While there is always more work to be done, these measures lay a strong foundation for attracting capital and strengthening Greece’s position as a promising hub for start-ups.

By Angelos Sarrigiannis, Junior Associate, Your Legal Partners

Bernitsas has advised Helleniq Energy Real Estate and its shareholder Helleniq Energy Holdings on an up to EUR 50 million common secured bond loan issued by Helleniq Energy Real Estate to Eurobank for the acquisition of real estate property.

Earlier in 2024, Bernitsas advised Helleniq Energy on a EUR 1.5 billion financing (as reported by CEE Legal Matters on August 15, 2024). In 2023, Bernitsas advised Helleniq Energy Holdings on a EUR 400 million refinancing (as reported by CEE Legal Matters on December 1, 2023). Back in 2022, Bernitsas also advised Helleniq Energy Holdings on the EUR 33.5 million joint financing of its subsidiary Hellenic Petroleum Digital by Alpha Bank and the Recovery and Resilience Fund (as reported by CEE Legal Matters on November 23, 2022).

The Bernitsas team included Partner Athanasia Tsene and Senior Associate Sildia Fotopoulou.

Bernitsas did not respond to our inquiry on the matter.